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Assume that you have been hired as a consultant by Kruger Industrial Smoothing to estimate their weighted average cost of capital. Kruger s stock is
Assume that you have been hired as a consultant by Kruger Industrial Smoothing to estimate their weighted average cost of capital. Krugers stock is currently selling for $ per share, and its noncallable $ par value, year, bonds with semiannual payments are selling for $ Their beta is the yield on a year Treasury bond is The market risk premium is and their tax rate is Finally, Krugers optimal capital structure is debt and equity.
What is Krugers WACC?
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